JD.com will invest US$800mil (RM3.30bil) in Dada Nexus, the operator of rapid delivery service JD Daojia, in the latest move by the Chinese e-commerce giant to establish a stronghold in the burgeoning community group buying sector ahead of a public listing of its JD Logistics unit in Hong Kong.
JD.com founder Richard Liu Qiangdong is leading a newly-established community group buying business, according to Chinese media, and this latest move shows the strategic importance of a sector that has become a key battlefield for Chinese Internet giants from Meituan to Pinduoduo. Alibaba Group Holding, which owns the South China Morning Post, has also embraced the business model that allows residents in a community to buy groceries and other daily essentials in bulk at prices cheaper than what they would pay individually.